Ronson stronger than last year
ResidentialThe developer is planning to hand over the keys to more than 1,000 apartments (105 of which were handed over in Q1). In Q1 2016 Ronson sold 206 apartments – a growth of almost 11 pct compared to the same period last year, when 186 apartments were sold. Its most popular projects in terms of sales were Espresso (59 apartments) and City Link (33 apartments), both in Warsaw. Furthermore, 36 apartments were sold in Kamienica Jeżyce in Poznań, the first stage of which will have a useable and residential area of 7,800 sqm and the second will comprise 7,400 sqm. In addition to this, in Q1 2016 Ronson started the construction of two projects: the fourth stage of Espresso (146 apartments) and the third stage of Młody Grunwald in Poznań (108 apartments).
At the end of March Ronson was offering 919 apartments. Over the first three months of the year the company did not complete any projects. However, the completion of seven projects including a total of over 1,000 apartments is planned. Ronson Europe generated revenue of PLN 41.9 mln over the period, compared to PLN 40.4 mln a year earlier, which represents growth of 3.6 pct. The company handed over 105 apartments with a combined area of 6,500 sqm to buyers, whereas last year it was 121 apartments with an area of 6,200 sqm. The Młody Grunwald projects in Poznań had the greatest impact on the Q1 figures, with 67 apartments were handed over to buyers. The gross sales profit amounted to PLN 4 mln compared to PLN 4.6 mln a year earlier. Meanwhile the gross margin amounted to 9.5 pct in Q1 compared to 11.4 pct a year earlier. The developer explains that the reduction of the gross margin mostly results from handing over apartments in less profitable projects compared to a year ago (mostly in the Młody Grunwald estate).
“In line with our expectations, Q1 2016 closed in the red. This is closely related to the schedule for completion of our projects – we did not finish any projects in this period, which was not a surprise of course. We can expect an improvement in the results as soon as Q2, when we are planning to complete two significant projects; however, just like last year, H2 holds the best prospects for us. We expect that over the entire year, we will hand over keys for more than 1,000 apartments – meaning a significant improvement in our financial results compared to last year,” said Tomasz Łapiński, the financial director of Ronson.
The new projects that could be launched until before the end of the year are Nova Królikarnia I on ul. Jaśminowa in Warsaw’s Mokotów district (106 apartments), Marina Miasto nad Odrą on ul. Na Grobli in Wrocław (151 apartments) and the first stage of a project on ul. Marywilska in Żerań (233 apartments), where app. 1,500 apartments are eventually to be built. This will be the largest project by the company. Other projects are in later stages: City Link III (189 apartments), Naturalis IV (57 apartments) in the Warsaw area, Chilli City IV (45 apartments) in Poznań, Vitalia II (36 apartments) in Wrocław and Panoramika III in Szczecin (107 apartments).
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